Shopify vs Etsy Fees Comparison

Overview

The phrase shopify vs etsy fees captures a common decision point for entrepreneurs choosing how to sell online: a hosted storefront (Shopify) versus a marketplace (Etsy). This article compares fee structures, how fees affect margins, and the tradeoffs between control, audience, and cost. Key decision criteria include expected sales volume, average order value, product type (handmade/vintage/digital versus branded/scale), marketing resources, and need for customization or multi-channel selling.

Quick summary: Etsy is best for sellers who want a low-friction path to customers, especially for handmade, vintage, and craft-oriented products, and who prefer pay-per-sale pricing. Shopify is best for merchants who want full brand control, scalable margins at higher volume, advanced integrations (POS, subscriptions, multi-currency), and the ability to reduce per-sale fees by using Shopify Payments and optimizing operations.

This guide provides concrete fee numbers, example fee calculations for comparable sales, side-by-side tables, and a clear decision checklist to help you pick the right platform for your ecommerce business goals.

Shopify vs Etsy Fees

Snapshot comparison - main cost drivers:

• Shopify: monthly subscription + payment-processing percentage + optional transaction fees (if not using Shopify Payments) + app/theme costs.
• Etsy: per-listing fee ($0.20), transaction fee (6.5%), payment processing fee (varies by country), and optional advertising fees (Etsy Ads, Offsite Ads 12-15%), plus optional subscription Pattern or Etsy Plus.

Quick table (high-level)

Feature | Shopify | Etsy — | —: | —: Monthly fee | $5 to $399+ (plans) | $0 to $10+ (optional subscriptions) Per-item listing fee | None | $0.20 per listing (4-month duration or until sold) Transaction fee | None with Shopify Payments; otherwise 0.5%-2.0% + card fees | 6.5% of sale price (including shipping) Payment processing | 2.4% - 2.9% + $0.30 in US (varies by plan/location) | ~3% + $0.25 in US (varies by country) Advertising fees | Optional apps, built-in marketing tools | Etsy Ads + Offsite Ads (12% to 15% on attributed sales) Best for | Branded stores, scale, control | Discoverability, low setup cost, handmade/vintage niches

Shopify

Overview and Positioning

Shopify is a hosted ecommerce platform focused on building and scaling independent online stores. It emphasizes customization, integrations, and omnichannel selling (web, social, marketplaces, POS). Shopify positions itself for merchants who want to own their brand experience and control customer data, while benefiting from built-in payments, shipping, and app ecosystems.

Key Features and Strengths

• Hosted storefront with customizable themes and full HTML/CSS/Liquid access.
• Multiple plans to match growth stages; Shopify Plus for enterprise.
• Built-in payment gateway (Shopify Payments) with integrated payouts and fraud tools.
• Large app marketplace for subscriptions, inventory, marketing, accounting and more.
• POS system for in-person sales and unified inventory.
• APIs and multi-channel selling (Amazon, Facebook, Instagram, TikTok, Google).

Limitations and Tradeoffs

• Requires marketing investment to drive traffic - no built-in marketplace audience.
• Monthly subscription and app costs can add up, especially for new sellers.
• Payment processing rates vary by plan and country; lesser-known gateways may trigger extra transaction fees.
• More setup work and design choices compared with listing on a marketplace.

Pricing and Value

Common Shopify plans (US pricing, approximate as of mid-2024):

• Shopify Starter: $5/month - basic social links and buy buttons (no full storefront).
• Basic Shopify: $39/month - online store, 2 staff accounts.
• Shopify: $105/month - professional reports, better card rates.
• Advanced Shopify: $399/month - advanced reporting, lower card rates.
• Shopify Plus: custom pricing (enterprise level).

Payment processing (Shopify Payments, US example):

• Basic: 2.9% + $0.30 per transaction.
• Shopify: 2.6% + $0.30.
• Advanced: 2.4% + $0.30.

If you use a third-party payment provider instead of Shopify Payments, Shopify may charge additional transaction fees (typical historical ranges: Basic 2.0%, Shopify 1.0%, Advanced 0.5%) on top of the external processor fees. Note that rates and fees vary by country and may change; always confirm current regional rates in your Shopify admin.

Other costs:

• Themes: free or one-time paid themes ($100-$350).
• Apps: many free options but many paid apps average $5-$50/month each.
• Shipping labels and POS hardware are additional.

Example fee on a $50 product + $10 shipping (total $60) on Basic Shopify using Shopify Payments:

• Payment processing: 2.9% of $60 = $1.74 + $0.30 = $2.04.
• No listing fee, no marketplace transaction fee.
• Monthly subscription amortized depends on volume (e.g., $39/month at 10 orders = $3.90/order).

Best For

• Merchants aiming to build a brand and own customer relationships.
• Sellers with moderate-to-high volume who can amortize monthly costs.
• Businesses needing advanced integrations, subscriptions, or POS.
• Sellers who want to reduce per-sale fees via Shopify Payments and negotiation at scale.

Etsy

Overview and Positioning

Etsy is a niche marketplace focused on handmade, vintage, craft supplies, and unique items. It provides an audience of buyers searching within the marketplace, which reduces the marketing barrier for new sellers. Etsy is more of a turn-key channel for creative entrepreneurs who prefer marketplace demand over investing in their own store building.

Key Features and Strengths

• Immediate marketplace audience and search discoverability.
• Very low friction setup; simple seller dashboard and mobile app.
• Built-in payment processing and shipping label purchase.
• Niche positioning for handmade, vintage, craft supplies and digital downloads.
• Optional features: Etsy Ads, Offsite Ads, Etsy Plus subscription, Pattern website builder.

Limitations and Tradeoffs

• Less branding and customization control compared to Shopify.
• Fee complexity: listing fee, transaction fee on total order (including shipping), payment processing, and optional advertising/performance fees.
• Competition inside the marketplace and potential dependence on Etsy algorithms and traffic.
• Policies and enforcement by platform can affect sellers (e.g., permitted items, intellectual property rules).

Pricing and Value

Core Etsy fees (US example, approximate as of mid-2024):

• Listing fee: $0.20 per listing for a 4-month period (or until sold).
• Transaction fee: 6.5% of the total item price plus shipping and gift wrap.
• Payment processing: varies by country; US example 3% + $0.25 per transaction (rates differ by region).
• Offsite Ads: for many sellers, Etsy runs offsite ads that can result in additional fees of 12% to 15% of sale price for sales attributed to those ads. Sellers with annual sales below a threshold (historically $10k in the past 365 days) may be subject to a higher rate; terms have changed over time so verify current policy.
• Etsy Plus: $10/month (optional) for additional shop customizations and listing credits.
• Pattern (Etsy website builder): around $15/month (optional).

Example fee on a $50 product + $10 shipping (total $60) on Etsy (US):

• Listing: $0.20.
• Transaction: 6.5% of $60 = $3.90.
• Payment processing: 3% of $60 = $1.80 + $0.25 = $2.05.
• If an offsite ad applies at 15%: 15% of $60 = $9.00.

Totals:

• Without offsite ads: $0.20 + $3.90 + $2.05 = $6.15 -> seller nets $53.85 (10.25% total take)
• With offsite ads at 15%: $15.15 total fees -> seller nets $44.85 (25.25% total take)

Note: Etsy applies the transaction fee to the total (item price + shipping). Payment processing and offsite ad percentages vary by country and seller profile.

Best For

• Sellers with handmade, vintage, craft or niche goods who want fast access to buyers.
• New sellers who want minimal setup and immediate marketplace traffic.
• Low-volume sellers who prefer pay-per-listing and per-sale fees over a monthly subscription.
• Sellers who value ease-of-use and marketplace discovery over full brand ownership.

How to Choose

Decision checklist (4-5 point criteria)

1. Monthly volume and average order value:

• Low volume, low AOV: Etsy often has lower upfront costs and better immediate ROI.
• High volume or high AOV: Shopify typically scales better because fixed monthly costs are amortized.

2. Customer ownership and branding:

• Need full control over storefront, emails, and UX: choose Shopify.
• Happy to trade some control for marketplace traffic: choose Etsy.

3. Product fit and discoverability:

• Handmade, vintage, craft, and niche artisan goods: Etsy’s audience is a strong match.
• Branded products, private label or cross-category retail: Shopify is better.

4. Marketing resources:

• Limited marketing capacity: Etsy provides built-in customers but you may still pay for ads.
• Strong marketing or desire to build multi-channel presence: Shopify offers better tools to grow and diversify.

5. Fee sensitivity and payment processing:

• If avoiding per-item listing fees and reducing per-transaction percent is a priority, Shopify Payments on higher-tier plans reduces card fees.
• If you prefer pay-as-you-go with no monthly subscription, Etsy’s model may suit you.

Use this checklist to align platform choice with your business model. Many merchants start on Etsy to validate products and later move to Shopify to scale and capture customer data.

Quick Comparison

Feature | Shopify | Etsy — | —: | —: Pricing (starter) | $5/mo Starter; $39/mo Basic | Free to join; $0.20 per listing Monthly cost typical | $39 - $399+ | $0 - $10+ (optional) Listing fee | None | $0.20 per listing (4 months) Transaction fee on sale | 2.4% - 2.9% + $0.30 (Shopify Payments) | 6.5% of sale (including shipping) Third-party gateway surcharge | 0.5% - 2.0% if not using Shopify Payments | N/A Payment processing fee | Included in Shopify Payments rates | ~3% + $0.25 (US; varies) Advertising fees | Optional apps and ad spend | Etsy Ads + Offsite Ads (12%-15% on attributed sales) Brand control | High | Limited Built-in audience | None (must drive traffic) | Large internal buyer base for niche goods Best for | Branded stores, scale, omnichannel | Handmade/vintage sellers, low-setup sellers

Pricing Breakdown Examples

Scenario assumptions are illustrative. Actual fees vary by country, plan, and promotions.

Example A - Single order: $50 item + $10 shipping = $60 gross

Shopify Basic (Shopify Payments, US):

• Monthly fee: $39 (amortized per seller volume)
• Payment processing: 2.9% + $0.30 = $2.04
• Listing fee: $0.00
• Total per-order fees (payment only): $2.04
• Effective percent on this sale (excl. monthly): 3.4%

Etsy (US):

• Listing fee: $0.20
• Transaction fee: 6.5% of $60 = $3.90
• Payment processing: 3% + $0.25 = $2.05
• Offsite ads (if applicable at 15%): $9.00
• Total without offsite ads: $6.15 (10.25% of order)
• Total with offsite ads: $15.15 (25.25% of order)

Example B - Monthly volume 1,000 orders of $60 each (scaling effect)

Shopify Basic:

• Monthly subscription: $39
• Payment processing (2.9% + $0.30) aggregated: 2.9% of $60k = $1,740 + $0.30*1000 = $300 -> $2,040
• Total monthly fees: $2,079
• Effective rate: 3.465% of gross

Etsy:

• Listing fees depend on inventory churn; assuming 1 listing per active SKU and relist frequency minimal
• Transaction fees: 6.5% of $60k = $3,900
• Payment processing: 3% = $1,800 + $0.25*1000 = $250 -> $2,050
• Total without offsite ads: $6,200 (10.33% effective)
• Total with offsite ads at 15% on some sales would be materially higher.

Interpretation: At scale, Shopify’s percentage-based processing fees plus a modest monthly subscription result in substantially lower per-sale cost than Etsy’s transaction fees and payment processing, assuming you can generate your own traffic or cost-efficient marketing.

FAQ

Which Platform is Cheaper per Sale?

It depends on volume and the presence of offsite ad fees. Per-sale processing fees on Shopify (with Shopify Payments) are typically lower - around 2.4%-2.9% + $0.30 in the US - whereas Etsy charges a 6.5% transaction fee plus payment processing and possible offsite-ad charges. For low volume sellers, Etsy can be cheaper because there is no or minimal monthly subscription; for higher-volume sellers Shopify often becomes cheaper per sale.

Can I Sell on Both Shopify and Etsy at the Same Time?

Yes. Many sellers use Etsy for marketplace demand while running a Shopify store to capture branded repeat customers. Shopify integrates with listing and inventory apps that can sync with Etsy, but expect complexity in inventory management, order routing, and channel-specific fees.

What are Offsite Ads on Etsy and How Do They Affect Fees?

Offsite Ads are Etsy-run advertising campaigns that send external traffic to listings. If a sale is attributed to an offsite ad, Etsy charges an additional fee (historically 12%-15%) on that sale. The fee applies only to sales attributed to those ads, but policies and thresholds can change, so check the current Etsy seller policies.

Does Shopify Charge Transaction Fees in Addition to Payment Processing?

Shopify does not charge transaction fees when you use Shopify Payments. If you use an external payment gateway, Shopify historically charged an extra transaction fee (percentage varying by plan, e.g., 0.5%-2.0%). Verify the current Shopify terms in your region before selecting a payment gateway.

How Do Listing Fees Compare Between the Two Platforms?

Shopify does not charge per-listing fees for adding items to your store. Etsy charges a $0.20 listing fee per item for a 4-month duration or until sold. For sellers with many low-turn SKUs, Etsy listing fees can add up.

Will VAT, Sales Tax or Currency Conversion Affect These Fees?

Yes. Both platforms have tax and VAT collection features, and both apply payment processing and currency conversion fees differently by region. Sellers may also be responsible for collecting and remitting taxes where required.

Always verify tax handling and conversion fees in your country and consult an accountant for tax compliance.

Further Reading

• Shopify vs Stripe Comparison
• Shopify vs Ecwid Comparison for Ecommerce Owners
• Shopify vs Squarespace vs Wix Ecommerce Comparison
• Shopify vs Big Cartel Comparison